Capacity precommitment, price competition and forward markets Articles uri icon

publication date

  • February 2014

start page

  • 362

end page

  • 364

issue

  • 2

volume

  • 122

International Standard Serial Number (ISSN)

  • 0165-1765

Electronic International Standard Serial Number (EISSN)

  • 1873-7374

abstract

  • The Cournot model can be seen as a reduced form of a more realistic model of capacity choice followed by price competition. We show that this is not the case if forward markets are added as their pro-competitive effects no longer hold. (c) 2014 Elsevier B.V. All rights reserved.

keywords

  • capacity choice; price competition; forward markets; oligopoly